Russia Boosts Fuel Shipments to Latin America

After the full EU embargo on importing Russian oil products took effect in February 2023, Brazil has become one of the biggest importers of Russian fuel. Russia has also increased exports to Venezuela, Jamaica and Cuba.

According to LSEG, the vessel Zeynep with 33,000 metric tons of diesel this week reached the port of Arica in Chile after setting off from Primorsk on the Baltic Sea. Another vessel - the Sino Faith - that loaded with 42,000 tons of diesel in the Baltic port of Vysotsk discharged part of its load in the Brazilian port of Paranagua before also heading to Arica. Three market sources said the diesel from both vessels is destined for Bolivia, which relies on regional ports because it is land-locked.

Bolivian state energy firm YPFB confirmed it expected shipments from Russia.

"YPFB is expecting three ships to arrive at Arica, carrying crude oil, diesel and gasoline. They are waiting to be unloaded in Arica, all three under international quality standards," a YPFB spokesperson told Reuters on Tuesday 23 July.

Previously, the president of Bolivian state energy firm YPFB Armin Dorgathen told Reuters the country was seeking Russian help to ease falling fuel supplies.

Bolivia imports half of the gasoline needed to meet domestic demand, costing some $800 million annually, and as much as 80% of diesel supplies, mainly from other South American countries.

Following widespread reports of customers enduring long waits for petrol and diesel, the Bolivian President Luis Arce on Tuesday said he was addressing the shortage.

"Today, the diesel and gasoline that we consume is imported... we are correcting that," Arce said during a site visit to the Mayaya Centro-X1 field, the country's latest natural gas discovery north of La Paz.

Bus driver, Edwin Plata, who shuttles commuters across the city of La Paz, said there had been widespread reports of diesel shortages since Monday. "In all the trips we have to make, we have to wait in lines, we arrive tired from our journey and we wait in line," Plata said.

Representatives from Bolivia's heavy transport industry threatened to protest later this week unless diesel supplies improved.